Article: INDIAN TERROR ATTACK TO HAVE SHORT-TERM IMPACT: ECONOMISTS.

NEW DELHI, Dec 1 Asia Pulse - The terror attack on India's financial capital, say economists, will have a short-term impact on the economy, but sentiments could be given a boost in the medium- to long-term if the Government responds by improving the law and order.

However, Chief Economic Advisor in the Finance Ministry Arvind Virmani said non-economic shocks of this nature generally have a very little direct impact on the economy.

Virmani said, "What actually turns out to be more important in the medium- to long-term is how the system responds and deals with it."

The reforms, he pointed out, have not only to be on the economic front but they ...

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